SEQ councils accused of 'pocketing' water profits

Southeast Queensland councils have been accused of pocketing huge profits from water utilities instead of passing on savings to ratepayers.

Brisbane City Councillor Milton Dick says Queensland Urban Utilities will make a $182 million dividend payment to Brisbane council, which owns 85 per cent of the company, and its four other council shareholders, Ipswich, Lockyer Valley, Somerset and Scenic Rim.

Opposition councillor Milton Dick said council coffers were being lined with ratepayers' money.

"Cost of living pressures are hurting Brisbane families and instead of using this money to prop up the Brisbane City Council budget, the Lord Mayor should be returning the money to ratepayers through water rebates," he said in a statement.

Council's finance chairman Julian Simmonds told AAP the dividends has already been used to fund other council projects and services.

"Every cent we receive goes directly to council services such as libraries and parks and it's always been that way," he said.

"If the Labor opposition want those monies directly given to ratepayers there would be many millions less being spent in services across the suburbs."